$100 million has been allocated and is available on a first come, first served basis. So if you are thinking of buying one of the new Pasadena condo developments like Granite Park or Lake at Walnut, make sure to take the opportunity to apply for this credit.
Here are the California tax credit rules:
It is only available for NEW HOME PURCHASES.
This tax credit is only available for qualified buyers who purchase a qualified residence between March 1, 2009 and March 1, 2010 and only until the tax credit allocated amount lasts.
The property purchase must never have been occupied before, i.e. new construction!
The buyer must reside in the new home for a minimum of two years immediately following the purchase date.
Be eligible for the property tax homeowner's exemption under California Revenue and Taxation Code Section 218.
California Tax credit amounts
California allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from us. Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available.
Total credit allocated to date by California: $0
Remaining credit available: $100,000,000
To check how much Tax Credit Allocation is available, visit the Franchise Tax Board New Tax Credit for New Construction Home Buyers Page.
California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.
How To Apply:
Read the original post for complete information!
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How are they doing that? Is the news wrong? I thought tax paying citizens were getting IOU's on their state income taxes?